I am looking for people who can recommend a good strategy into converting my passwords.rtf file into KeePass. My passwords.rtf document looks like this and contains about 70 entries, so manual entry seems like building the 4th bridge. (Replace with better idiom)

Good solution, but CSV ("comma-separated value") format normally uses commas instead of pipes. The strings will also need ot be normalized by removing .+:\s from the beginning of each username or password line. KeePass in particular requires each field to be enclosed in quotes (and any quotation marks in a field value must be escaped). KeePass CSV format: keepass.info/help/base/importexport.html#csv
–
robJun 16 '11 at 18:37

Furthermore, when you import CSVs into KeePass, the wizard will give you the opportunity to arrange the items and have them correspond with KeePass fields; you don't have to worry about how your CSV is arranged. Just make sure you have at least 2 fields for each item in your CSV: username and password.
–
EllesaJun 16 '11 at 18:40